Gold Corrects Sharply: How Unusual is This Move?

Gold prices have taken a sharp downturn after reaching a recent high of Rs 1,63,229 per 10 grams on August 24. The metal traded between roughly Rs 1.52 lakh and Rs 1.59 lakh per 10 grams from September 1-3. While gold has recovered somewhat since then, investors are wondering how unusual it is for the precious metal to correct sharply from its highs.

Data going back to 1980 shows that sizeable declines within a year have been a regular feature of gold's journey. The average intra-year drawdown over this period has been around 13 percent, according to FundsIndia Research.